Prius even if it has higher fuel consumption. Lets investigate that claim now, assuming a car similar
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Prius even if it has higher fuel consumption. Let’s investigate that claim now, assuming a car similar to a Ford Fiesta. The capital cost to buy it is substantially lower, as are the yearly taxes and insurance, but the fuel consumption is about 50% higher.
- The car costs $15000 to buy.
- The capital charge factor is 0.23, the same as the Prius.
- The taxes, fees, and insurance each year total to $1000.
- You drive the car 20000 km/year, the same as the Prius.
- Variable operation and maintenance (VOM) costs add up to $0.018 per kilometer.
- Fuel costs $2.20 per liter.
- The car can travel 100 km on 7.7 L of fuel.
1-What is the total fixed cost in dollars per kilometer?
2-What is the variable cost in dollars per kilometer?
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